Tamil Nadu forms Revenue Augmentation Committee to boost own-tax revenues

Why in news

Tamil Nadu formed a Revenue Augmentation Committee to enhance fiscal self-reliance by strengthening own-tax and non-tax revenue streams.

Background

The committee is chaired by Montek Singh Ahluwalia. Its primary objectives are to improve revenue buoyancy, plug leakages, and modernize the state's revenue management systems.

Facts for Prelims

• FactRevenue Augmentation Committee: State-level body in Tamil Nadu to boost fiscal self-reliance.
• PostMontek Singh Ahluwalia: Chairman of the Revenue Augmentation Committee.
• FactRevenue Buoyancy: A measure of the increase in tax revenue relative to the increase in GDP.

For Mains

Q. Discuss the significance of fiscal self-reliance for state governments in India and the challenges involved in plugging revenue leakages.

Dimensions to cover in your answer

• fiscal federalism
• revenue buoyancy vs. GDP growth
• digital governance in tax collection
• infrastructure funding

Keywords: fiscal self-reliance · revenue buoyancy · leakage plugging · fiscal autonomy · tax administration

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